BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 954
                                                                  Page  1

          Date of Hearing:   April 16, 2013

                        ASSEMBLY COMMITTEE ON HUMAN SERVICES
                                  Mark Stone, Chair
               AB 954 (Maienschein) - As Introduced:  February 22, 2013
           
          SUBJECT  :  Developmental Services: habilitation

           SUMMARY  :  Increases the rates and fees paid to supported  
          employment services providers for regional center consumers. 

          Specifically,  this bill  :  

          1)Increases the hourly rate for supported employment services  
            provided to consumers receiving individualized or group  
            services to $34.24.

          2)Increases the fee regional centers pay interim program  
            providers to complete the intake process for a consumer  
            entering a supported employment program to $400.

          3)Increases the fee paid for placement of a consumer in an  
            integrated job and the fee paid after a consumer is retained  
            in a job for 90 days to $800 apiece. 

           EXISTING LAW  

          1)Establishes the Lanterman Developmental Disabilities Services  
            Act (Lanterman Act), under which the Department of  
            Developmental Services (DDS) is authorized to contract with  
            private non-profit regional centers to provide case management  
            services and arrange for, or purchase, services that meet the  
            needs of individuals with developmental disabilities, as  
            defined. 

          2)Grants all individuals with developmental disabilities, among  
            all other rights and responsibilities established for any  
            individual by the United States Constitution and laws and the  
            California Constitution and laws, the right to treatment and  
            habilitation services and supports in the least restrictive  
            environment.

          3)Requires the development of an Individual Program Plan (IPP)  
            for each regional center consumer, which specifies services to  
            be provided to the consumer, based on an individualized needs  








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            determination.

          4)States the Legislature's intent that habilitation services for  
            adults with developmental disabilities be planned and provided  
            in a manner that enables persons with developmental  
            disabilities to approximate the pattern of everyday living  
            available to nondisabled people of the same age.

          5)Defines "habilitation services" as community-based services  
            purchased or provided for adults with developmental  
            disabilities, including services provided under the Work  
            Activity Program and the Supported Employment Program, to  
            prepare and maintain them at their highest level of vocational  
            functioning, or to prepare them for referral to vocational  
            rehabilitation services.

          6)Requires a regional center to authorize appropriate  
            habilitation services for a consumer while he or she awaits  
            service authorization from the Department of Rehabilitation if  
            the regional center has referred that consumer to the  
            Department of Rehabilitation for vocational rehabilitation  
            services, and the consumer is put on a waiting list. 

          7)Establishes the following rates and fees to be paid to interim  
            providers of rehabilitation services that are authorized by  
            the regional center for the period during which a consumer is  
            on a waiting list for vocational services from the Department  
            of Rehabilitation:

             a)   A rate of thirty dollars and eighty-two cents ($30.82)  
               per hour for supported employment services provided to  
               consumers receiving individualized or group services;

             b)   A three-hundred-sixty-dollar ($360) fee to be paid to a  
               program provider upon intake of a consumer into a supported  
               employment program;

             c)   A seven-hundred-twenty-dollar ($720) fee to be paid upon  
               placement of a consumer in an integrated job, as specified;  
               and

             d)   A seven-hundred-twenty-dollar ($720) fee to be paid  
               after a 90-day retention of a consumer in a job, as  
               specified.









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           FISCAL EFFECT  :  Unknown

           BACKGROUND

           The Lanterman Act (Welfare & Institutions (W&I) Code � 4500 et  
          seq.) guides the provision of services and supports for  
          Californians with developmental disabilities.  Each individual  
          under the Act, typically referred to as a "consumer," is legally  
          entitled to treatment and habilitation services and supports in  
          the least restrictive environment.  Lanterman Act services are  
          designed to enable all consumers to live more independent and  
          productive lives in the community. 

          The term "developmental disability" means a disability that  
          originates before an individual attains 18 years of age, is  
          expected to continue indefinitely, and constitutes a substantial  
          disability for that individual.  It includes intellectual  
          disabilities, cerebral palsy, epilepsy, and autism spectrum  
          disorders (ASD).  Other developmental disabilities are those  
          disabling conditions similar to an intellectual disability that  
          require treatment (i.e., care and management) similar to that  
          required by individuals with an intellectual disability.  This  
          does not include conditions that are solely psychiatric or  
          physical in nature, and the conditions must occur before age 18,  
          result in a substantial disability, be likely to continue  
          indefinitely, and involve brain damage or dysfunction.  Examples  
          of conditions might include intracranial neoplasms, degenerative  
          brain disease or brain damage associated with accidents. 

          Direct responsibility for implementation of the Lanterman Act  
          service system is shared by the Department of Developmental  
          Services (DDS) and 21 regional centers, which are private  
          nonprofit entities, established pursuant to the Lanterman Act,  
          that contract with DDS to carry out many of the state's  
          responsibilities under the Act.  The principal roles of regional  
          centers include intake and assessment, individualized program  
          plan development, case management, and securing services through  
          generic agencies or purchasing services provided by vendors.   
          Regional centers also share primary responsibility with local  
          education agencies for provision of early intervention services  
          under the California Early Intervention Services Act.  

          The 21 regional centers throughout the state serve over 250,000  
          consumers who receive services such as residential placements,  
          supported living services, respite care, transportation, day  








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          treatment programs, work support programs, and various social  
          and therapeutic activities.  Approximately 1,600 consumers  
          reside at one of California's four Developmental Centers-and one  
          state-operated, specialized community facility-which provide  
          24-hour habilitation and medical and social treatment services.   
          Over 125,000 regional center consumers are of working age.

          Services provided to people with developmental disabilities are  
          determined through an individual planning process.  Under this  
          process, planning teams-which include, among others, the  
          consumer, his or her legally authorized representative, and one  
          or more regional center representatives-jointly prepare an  
          Individual Program Plan (IPP) based on the consumer's needs and  
          choices.  The Lanterman Act requires that the IPP promote  
          community integration and maximize opportunities for each  
          consumer to develop relationships, be part of community life,  
          increase control over his or her life, and acquire increasingly  
          positive roles in the community.  The IPP must give the highest  
          preference to those services and supports that allow minors to  
          live with their families and adults to live as independently as  
          possible in the community. 

           Employment Services
           Regional centers contract with employment services programs and  
          providers to address the employment needs of individuals with  
          developmental disabilities.  Consumers are placed in jobs  
          according to their individual skills, needs and choices, and  
          they are provided support services on an individual or group  
          basis.  In addition to meeting the employment needs of the  
          consumer, work programs can also greatly increase opportunities  
          for community integration for consumers.

          Work Activity Programs (WAPs) are employment services programs  
          in a sheltered work environment for consumers who have acquired  
          basic vocational and independent living skills.  All WAP work is  
          paid at a daily per capita rate based on productivity.   
          Alternatively, Supported Employment Programs (SEPs) are  
          community-based rehabilitation programs that focus on helping  
          consumers obtain, retain or maintain employment in integrated  
          settings.  SEPs often involve job coaches that provide  
          on-the-job services and training, and wages paid directly to the  
          consumer by the employer.  If it is determined that some form of  
          supported employment would best meet the employment needs of a  
          consumer, a regional center will refer the consumer to the  
          Department of Rehabilitation (DOR), which is responsible for  








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          increasing employment opportunities in the community and  
          providing time-limited employment services to individuals with  
          disabilities.  If a regional center consumer needs long-term  
          support to continue in their place of employment, the  
          responsibility for providing a job coach and maintaining  
          supportive services shifts back to DDS.

          DOR provides and pays for three tiers of employment-related  
          services, with set corresponding rates, for individuals with  
          developmental disabilities.  These include: 

             1)   Intake to determine employment needs and develop a plan  
               of action;

             2)   Placement in a particular job; and

             3)   Retention for 90-days in a particular job.

           COMMENTS  :

          According to the author, this bill seeks to increase the  
          statutorily-set supported employment rates and one-time intake,  
          placement and maintenance fees to the levels achieved in 2006,  
          which were maintained until a 10% cut was applied in the 2008-09  
          Budget Act.  While all of the rates and fees included in W&I  
          Code �4860 have applied to regional centers in the past, the  
          only rates that apply to services currently paid for by the  
          regional centers are the individual- and group-based hourly job  
          coaching rates for supported employment (which the author seeks  
          to increase from $30.82 to $34.24).  Conversely, the fees  
          established in this section, which the bill also increases, are  
          intended to be paid by the regional centers to program providers  
          only when W&I Code �4855 applies, or in other words, when a  
          consumer is referred to DOR by the regional center and is placed  
          on a waiting list.  In this instance, the regional center would  
          be responsible for paying the indicated fees while the consumer  
          awaits services from DOR.  However, while there may be a waiting  
          list within the DOR service and rate structure for people with  
          developmental disabilities again in the future, consumers who  
          are referred now are given equal consideration among individuals  
          that do not have developmental disabilities and are not placed  
          on waiting lists.  

          While the elimination of the DOR waitlist for individuals with  
          developmental disabilities would seem to eliminate the need for  








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          the fee increases in the bill, the increases sought will  
          actually result in fee increases for providers of services  
          through DOR, as DOR bases its uniform service structure for  
          individuals with developmental disabilities -including  
          applicable rates and fees-on WIC �4860.  Essentially, the rate  
          and fee increases included in this bill will apply to consumers  
          regardless of whether the services outlined in this Section are  
          paid for by the regional centers or through DOR.

          In support, the Association of Regional Center Agencies states:
               "This proposed rate increase will restore rates to 2006  
               levels, and will help bolster the offerings of agencies in  
               supporting persons with developmental disabilities toward  
               the objective of finding and keeping a job.  This  
               population already has an unemployment rate of over 80% in  
               California.  As the state's economy recovers, this bill  
               will help ensure that people with developmental  
               disabilities do not get left behind."

           RELATED LEGISLATION

           AB 1041 (Chesbro) establishes Employment First Policy  
          requirements related to the inclusion of integrated employment  
          opportunities and services in a regional center consumer's  
          individual program plan (IPP). 

          AB 1112 (Ammiano) would remove the statutorily indicated rates  
          and fees that apply to job coaching and supported employment  
          services, and would replace them with a cross-reference to rates  
          set by the Department of Rehabilitation.  *It should be noted  
          that the provisions of AB 954 (Maienschein) and AB 1112  
          (Ammiano) are in direct conflict, as currently drafted.
          
          SB 577 (Pavley) requires DDS to establish a pilot program for  
          young adults with ASD to help them find pathways to financial  
          independence through work.

















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           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Association of Regional Center Agencies (ARCA)
          The Alliance

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Myesha Jackson / HUM. S. / (916)  
          319-2089